Bitcoin‘s price has recently surpassed the $71,000 mark several times but failed to reach $73,000 due to intense selling pressure. This pressure has resulted in a significant correction, causing the price to drop sharply. Despite this downturn, some market observers believe that the bull run for Bitcoin might not be over yet.
What Does the Daily Chart Reveal?
TradingRage analyst’s insights emphasize critical price levels and predict potential future movements for Bitcoin. On the daily chart, Bitcoin has struggled to maintain its position above $66,000. The analyst interprets this as a correction phase, which is not a promising sign. The failure to break out of a descending channel formation is seen as a false breakout, adding to the bearish sentiment.
During this period, Bitcoin’s Relative Strength Index (RSI) value has dropped below 50, suggesting increasing dominance by sellers. This scenario has fueled fears of a further downward spiral in the market. Currently, Bitcoin is holding at the support level of $60,000.
How Does the 4-Hour Chart Compare?
Conversely, the 4-hour chart for Bitcoin presents a slightly more optimistic view. Although the price dipped just below the horizontal channel’s support level, it has shown signs of recovery. Should Bitcoin continue to move within this channel, it could potentially retest the $72,000 resistance area. However, a sustained break below this channel could lead to a deeper price decline.
User-Usable Inferences
Based on the analysis, here are some key takeaways for traders:
- Monitor the $66,000 level closely as it serves as a critical support point on the daily chart.
- A drop in RSI below 50 could indicate increasing selling pressure and potential further declines.
- Watch for false breakouts from descending channels, which may mislead short-term trading decisions.
- In the 4-hour chart, a recovery within the horizontal channel could provide opportunities to test higher resistance levels.
- A sustained break below the horizontal channel can signal a deeper downward trend, necessitating cautious trading.
Currently, Bitcoin trades at $66,100, with its market cap remaining over $1.3 trillion. However, the 24-hour trading volume has plummeted to $15 billion, indicating a significant drop in investor interest.
